On Wednesday November 25th, 2015 at 12:00 p.m., Lori Moggy came into our office for a Lunch and Learn to discuss the topic of Reversed Mortgages in Canada. Lori is a licensed Mortgage Agent at HQ Mortgages in Sudbury Ontario and has over 25 years of experience in the financial services sector, with a strong focus on mortgage lending and mortgage insurance.
To find out more about Reversed Mortgages, see below, or click on this link! https://www.youtube.com/watch?v=T6kUgurdOTI
What is A Reversed Mortgage?
A reversed mortgage is a mortgage designed specifically for the changing financial needs of seniors. One must be 55 or older and own a home or condo to qualify for a reverse mortgage in Canada.
Unlike a traditional mortgage, there are no payments to make. The payments that would normally occur are used instead by the mortgage company to reduce the equity of the home. One could make monthly interest payments if he wished, but most people choose to pay back the mortgage when they sell their home. The amount of the mortgage increases as time passes, but the mortgage amount can never exceed the value of the home when sold and that value will probably increase with time as well and the difference goes to the party that owns the home.
Where obtaining a normal mortgage depends on such things as credit rating and ability to pay, a reverse mortgage depends only on a combination of the appraised value of the home and the age of the borrower. The calculations are similar to those by insurance companies, using actuarial tables.
Yes, you read it correctly. For a reverse mortgage, nobody cares about your credit or your debt.
If you want to know more about Reversed Mortgages, Lori Moggy’s contact information is listed below.